Does My Association’s Insurance Cover My Condo?

There are many reasons why people buy condos. They may be looking for a new lifestyle or location, or perhaps they are more interested in a lower maintenance option.

There is a lot to consider when buying a condo in Catonsville, MD, including insurance. Often, we’ll hear someone assuming their condo association’s insurance will also cover their unit. HBW Insurance Group wants to ensure you know this is not always the case.

There Are Two Types Of Condo Insurance

The type of insurance your condo association has is called a "master policy, " which is required by Maryland law. This master policy covers the common areas and the basic structure of the building. While this does include the floors, walls, and fixtures that were part of the building when it was constructed, it does not include your personal belongings.

The second type of insurance is the "unit owner’s policy." This is a policy that covers your individual unit’s contents, as well as protects you in a property damage or liability claim. This policy is not required by law. However, the state does allow associations to require it as a condition of residency.

Do I Need A Unit Owner’s Policy?

You are always subject to loss or damage to your personal property. If there is a fire, burglary, or if you’re sued by someone who was injured in your unit, you will be responsible for the cost of replacing your items or defending yourself in court.

Furthermore, some types of damage are determined to be the joint responsibility of the association and the unit owner. For example, if the roof of your unit leaks, the association will have to pay for the repair, but they may assess you for at least part of the cost if they determine that you contributed to the damage.

Don’t let lack of coverage turn your Catonsville, MD condo dreams become nightmarish. Reach out to HBW Insurance Group today!